Ontario Increases College and University Funding by Over $1.2 Billion, Extends Tuition Fee Freeze
Ontario Unveils Major Funding Injection for Colleges and Universities, Freezes In-Province Tuition Fees for Three Years”
Ontario’s Minister of Colleges and Universities, Jill Dunlop, announced a substantial financial boost exceeding $1.2 billion to stabilize the financial standing of colleges and universities. Despite the injection, the province mandates a freeze on in-province tuition fees for at least three more years, Dunlop confirmed on Monday.
The decision comes in the wake of a recent government-commissioned report highlighting the precarious financial situation resulting from low provincial funding compounded by a 2019 tuition cut and freeze. The report underscored a “significant threat” to the sector’s financial sustainability.
While an expert panel proposed a one-time 10% increase in per-student funding followed by inflationary adjustments, alongside a 5% tuition hike matched by enhanced student aid, Dunlop announced an extension of the tuition fee freeze for Ontario students until at least 2026-2027, coinciding with the next provincial election. However, institutions gain leeway to raise tuition fees by up to 5% for domestic, out-of-province students.
In addition to financial measures, Dunlop introduced new legislation mandating colleges and universities to enact policies addressing mental health, combatting racism and discrimination, and enhancing transparency regarding fees.
“This is a broad range of measures that will offer much-needed stability to the post-secondary sector, and help keep costs down for students and their families,” Dunlop said at a press conference.
“Our goal is to put students and their needs first, while continuing to produce the world-class graduates Ontario is known for.”
The funding injection comprises approximately $900 million allocated to a three-year post-secondary education sustainability fund, with $200 million earmarked for institutions facing the most pressing needs, as outlined in a news release. Additionally, $167.4 million is designated for capital repairs and equipment, $100 million for STEM programs, $65 million for research and innovation, $23 million for mental health support, and $15 million for audits aimed at pinpointing long-term cost savings.
Dunlop also unveiled additional measures, including empowering colleges to confer applied master’s degrees in fields fostering graduates with sought-after skills like advanced manufacturing, artificial intelligence, and animation.
Moreover, the proposed legislation mandates colleges and universities to furnish students with comprehensive details on ancillary fees and supplementary costs such as textbooks.
The supplemental funding follows a government-commissioned report highlighting the shortfall in funding for full-time domestic students in publicly assisted colleges compared to other provinces. Simultaneously, the Council of Ontario Universities has flagged operational deficits plaguing at least 10 universities.
“According to a report from Higher Education Strategy Associates last year, Ontario’s post-secondary funding was described as ‘abysmal.’ Bringing spending up to the average of the other nine provinces would necessitate an additional $7.1 billion per year—a significant increase compared to the current operating funding level of around $5 billion.
The dearth of government funding has compelled post-secondary institutions to increasingly rely on international student tuition fees, which surpass the rates for Canadian students by a considerable margin.
However, earlier this year, the federal government announced a reduction in the number of visas for international undergraduate students, with Ontario’s allocation cut in half. Consequently, post-secondary institutions have recently expressed a deepening sense of urgency about their financial predicament.
